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LONDON – Dara Khosrowshahi's ten-year tenure as CEO of Uber has been marked by an extended public relations campaign to apologize for past misdeeds of the company and portray the start-up once proudly combative as a reformed enterprise.
On Monday, a London judge will test the success of his strategy.
Uber this week is starting a call to overturn a decision by the regulators of the British capital to revoke its operating license. If she can not argue her point of view, this decision could ultimately ban the city's Uber cars from 8.8 million euros, one of the most lucrative markets in the business. . Uber argues that the new policies put in place under Khosrowshahi show a renewed willingness to respond to government concerns.
The case before the Westminster Magistrates Court has ramifications far beyond London, and, given the changes that the city has already experienced with Uber, it could embolden others struggling with the regulation of ridesharing services. The decision will offer an indication as to whether governments and regulators are becoming more receptive to Khosrowshahi's conciliation efforts as he seeks to overcome the brusque way associated with his predecessor, Travis Kalanick.
"The lawsuit is one of the first major tests of Khosrowshahi's leadership and its new approach," said André Spicer, a professor at the City of Cass Business School, University of London, who follows the case. "The judgment will show whether the authorities are willing to accept Uber with some of the toughest hurdles, or if there are more fundamental questions about the Uber model."
Of all the questions Mr. Khosrowshahi has faced since Uber recovery – allegations of a sexist corporate culture, government investigations, executive turnover, data breach affecting millions of customers – the potential ban on London is one of the more pressing for the financial health of the company.
With more than 3.6 million people using Uber at least once every three months and 45,000 drivers transporting them, the British capital is the largest European market for Uber. The company has so far been able to continue operating while waiting for its appeal.
But a ban would be Uber's biggest regulatory setback so far. This could hurt his business at a critical juncture, as Khosrowshahi narrows his activities in the Asian losing markets and sets the stage for a first bid.
Mr Khosrowshahi had less than a month of work when London transport authorities revoked Uber 's license in September. Regulators said that Uber was not a "suitable and appropriate" company, an important classification for companies in Britain. They accused the overlap service of having poor safety standards, not performing enough background checks of drivers and using software to avoid government oversight.
Mr Khosrowshahi, former CEO of Expedia, was in the midst of contentious negotiations to settle a boardroom quarrel between Mr Kalanick and Uber investors at the time. He flew to London to discuss a potential tradeoff, calling for meetings of the board of directors in San Francisco during the brief run to Britain.
An agreement could not be reached at that time, but the trip provided a first opportunity to emphasize the need for change at Uber. In a letter to employees after the revocation of the London permit, Khosrowshahi said: "There is a high cost for a bad reputation.
Since then, Uber has tried to respond to many criticisms from London authorities, and an agreement could be reached to keep the company's cars on the roads. He introduced limits on the driving time of a driver, offered tools to report incidents to the police and agreed to share traffic data with the city. A new management team was created to lead the company's operations in London, while three independent executives were recruited from a board that oversees operations in Britain.
The company is also looking for only an 18-month license, rather than the typical five years, as a concession that it says will allow regulators to ensure that its reforms will last.
The question is whether the steps go far enough. At a preliminary hearing, District Senior Judge Emma Arbuthnot, who chairs the appeal, asked if the changes constituted a "smoke screen".
London is not the only area where Uber made changes under Mr. Khosrowshahi. The company has settled a long legal battle with Waymo, owned by Google's parent company, Alphabet, at the expense of autonomous vehicle technology. He has offered drivers new insurance protections in some markets, and he has proposed fees on road transportation services in New York to pay an "emergency fund" for troubled taxicab drivers .
The trial, scheduled to begin Monday, is expected to last several days, with testimony from Uber officials and officials from Transport for London, the regulator of the city. Mr. Khosrowshahi should not be present.
The case could drag on for years. If Uber loses this appeal, he can still bring the case to higher courts, and the company's cars will be allowed to stay on the road throughout the process.
Uber and Transport for London declined to comment.
London's shares are closely watched as a potential model for regulators elsewhere who are seeking to obtain Uber's concessions. Nine years after the founding of the company, policymakers continue to struggle with the repercussions of Uber's success and other similar services, including more crowded streets and devastated taxi groups.
In New York, where six taxi drivers have committed suicide in recent months, Mayor Bill de Blasio and City Council under pressure to adopt stricter rules against transport services. Uber has also faced restrictions in other US cities, such as Austin, Texas, and in countries like Canada, Denmark, France, Ireland, and Italy.
Court rulings have also had a major impact on Uber's development. In one case in December, the highest court of the European Union ruled that Uber was a transportation company, not just a digital platform, a decision that could force the company to comply with stricter requirements in terms of licensing and benefits.
"The era of regulating platform companies seems to be coming to an end," said Mark Graham, professor of internet geography at Oxford University, who has studied how Uber and D & D Other enterprises workers and traditional industries.
A new license for Uber would be a blow to black taxi drivers in London.
They argue that rivals working for Uber have an unfair advantage because they do not have to meet the same car specification requirements or pass a comprehensive exam, known as "Knowledge," which tests the ability of a driver to navigate the streets without a map. This, it is said, allows Uber to keep its prices lower than those of black cabs – Uber can be up to 30% cheaper than London taxis.
Steve McNamara, secretary general of the Association of Licensed Taxi Drivers, which accounts for about half of the city's 23,000 taxi drivers, said he was not convinced by the efforts of the company. Uber to project a more friendly corporate image.
"They are just saying what they have to say to get a license," McNamara said.
Still, many experts say that completely banning Uber is unrealistic.
In London, the service of the company has become The central mode of transportation and the removal of its cars would be an undesirable change for many commuters. More than 850,000 people signed a petition supporting Uber as a result of the ban last year.
Tony Travers, a professor at the London School of Economics, said he was expecting Uber to win the call. In April, the judge presiding over the case asked Uber and Transport for London to negotiate the terms of a new license in case it would rule in favor of the company.
"Uber has agreed to make improvements," said Professor Travers. An outright ban, he said, "is hard to imagine."
He added, however, that while the call would mark an important moment for Uber, the company would inevitably face more such challenges around the world.
This fight, he said, "will not be the last".
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